It is very important to look at how a Unit Linked Insurance Plan (ULIP) fund or mutual fund has performed during a market downturn, especially for riskier asset classes like equities, and whether the fund has been able to protect downside risk.
Otherwise, during the peak of a bull market, certain funds would look good in terms of performance, but the same may not look so good, if we were to look at their performance in a bear market. In bull-market cycles some funds take on higher risk.
